The New York Times Company, which like many of the nation's newspaper publishers is dealing with large pension obligations, is offering former employees the option of taking a lump sum payment for their pensions instead of a monthly payout.
The company made the announcement in a securities filing released on Friday morning.
According to the filing, about 5,200 former employees of the Times Company who have vested in the pension plan can continue to receive a pension when they retire or can accept a lump-sum payment in cash or to roll into a retirement plan. The participants must choose an option between Sept. 24 and Nov. 2.
The former employees being offered the option do not belong to the union and could include former employees of newspapers previously owned by the Times Company.
These employees account for just 15 percent of the company's total pension liabilities. The New York Times Company's total pension liabilities as of late last year totaled $1.987 billion.
Times Company officials are hoping this will help cuts costs.
“This offer is another step the company is taking to reduce the size of its pension obligations and the volatility in the company's overall financial condition,†according to the statement.
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